Is foreclosure possible due to second mortgage?
Date: Wed, 04/13/2011 - 01:52
Is foreclosure possible due to second mortgage?
I was required to pay off my second mortgage back in November 2010. The amount was around $45000. I didn't have that much of money. So, I defaulted on it. My lender informed me that he is going to foreclose my home. My first loan amount is nearly $650,000. The fair value of my house is 550,000. Can my second lender foreclose my home? What should I do? I have applied for loan modification for the first loan.
If the second mortgage lender does not receive his payments on t
If the second mortgage lender does not receive his payments on time, he legally has the rights to foreclose the property. However, if the second lender forecloses the property, then he will be liable to satisfy the debts of the first mortgage lender before satisfying his own debts. Thus, in most cases, if you default on the second loan, the lender will charge off the account and assign it to a collection agency who will in turn contact you for the payments.
As you've applied for a loan modification on the first loan, I will suggest you to contact your second lender and negotiate with them for a loan modification.
